In late 1977 Avco Embassy announced its intention to resume production. In 1978, Robert Rehme was appointed President and Chief Operating Officer and he convinced the company to give him $5 million for a production fund.

In late 1982, it set up its own home video division; Embassy Home Entertainment; prior releases from its film catalog had been handled through Magnetic Video. In 1984, Embassy Pictures was renamed to Embassy Films Associates.

Coca-Cola kept Embassy's television division alive; under their ownership the hit series 227 and Married... with Children began. Embassy Television was renamed Embassy Communications in 1986, then ELP (Embassy Limited Partnership) Communications in February 1988.

Coca-Cola, which also owned Columbia Pictures at the time, sold the theatrical division to Dino De Laurentiis, who folded the company into De Laurentiis Entertainment Group, and the home video division became Nelson Entertainment on August 15, 1987, run by Barry Spikings, along with some executives who had previously worked at DEG before it went bankrupt. Nelson Entertainment was the American subsidiary of Nelson Holdings International (NHI), a company based in Vancouver, British Columbia, Canada. Although De Laurentiis was now owner of Embassy, he was not given rights to then upcoming films such as Richard Attenborough's A Chorus Line, Crimewave, Saving Grace, and an adaptation of Stephen King's The Body (which became Stand by Me), which became properties of Lear and Perenchio.[13][14] Nelson Entertainment, in addition to primarily handling the Embassy library for home video, also financed theatrical films in conjunction with Columbia Pictures. They were one of the primary partners, along with Columbia, in the formation of Castle Rock Entertainment, due to the home video success of co-founder Rob Reiner's Embassy-produced films which they still handled. In 1988, Nelson gave the physical manufacturing and distribution duties of their home video company to Orion Pictures, and some of their film productions were acquired by Orion as well. In 1991, Nelson was sold to New Line Cinema, who renamed the video division New Line Home Video and also briefly took over Nelson's stake in Castle Rock Entertainment.

By the early 1990s, key rights to the Embassy library transferred from company to company due to the bankruptcies of the companies that separately owned them (De Laurentiis for theatrical, Nelson for home video). Dino De Laurentiis's assets went to Parafrance International, in conjunction with Village Roadshow, while Nelson's assets were acquired by Credit Lyonnais Bank and later sold to PolyGram. Nelson's parent company, NHI continued to exist well into the mid-1990s.

Today, the Embassy corporation, its divisions and film & television holdings, are split. The underlying rights to a majority of the Embassy library are currently held by French production company StudioCanal, with individual media rights leased to other companies. The theatrical rights to the Embassy film library are managed by either Stuart Lisell Films or Rialto Pictures, depending on the individual re-issue rights. Home entertainment rights (DVD, Blu-ray) are at the hands of Metro-Goldwyn-Mayer with 20th Century Fox Home Entertainment handling distribution for MGM. Other home video reissues (depending on certain titles) are owned by Image Entertainment (through The Criterion Collection), Lionsgate Home Entertainment, and Anchor Bay Entertainment, all via separate output deals. Sony Pictures Entertainment retained the television rights to most of the Embassy theatrical library and the Embassy logo, names, and trademarks through its subsidiary ELP Communications.[15]